badeye123 Thanks for keeping us up to date, yet again, on the P1...

badeye123

Thanks for keeping us up to date, yet again, on the P1 saga.

Assuming there is no doubt about the authencity of this letter, it is worth looking at

http://www.asx.com.au/listings/listing-capital-raising/listing-requirements.htm

to see ASX's summary of what the admission criteria are.

We read that there have to be a few hundred investors that have put in money to buy shares at $2.00.

The profit test is $1 million over the past 3 years.

The assets test is $3 million in net tangible assets. or a $10 million market capitalisation.

Now let's look at the Priority One Network Group Limited's accounts for the year ended 30 June 2014.

The shareholder test? See page 20. Hundreds of thousands of shares issued free, but since the original issue of $8 foundation shares at the Company's formation the Company has not issued any share capital for cash or cash equivalents. So it looks to me as if the foundation shareholders must number a few hundred. Do they?

Profit test? Sorry. A loss of $733,062.

Assets test? Sorry. Total current assets of $16,767.

And then there is the compounding problem of the auditors not being able to get sufficient appropriate audit evidence to express an opinion on this financial report (see last page).

In summary, it looks to me as if the application for listing is likely to prove premature.

By the way, the company makes no mention of this letter to shareholders on its website at

http://www.p1card.com

What I do see is that the company has added a link (on 20 December) to the 2013 accounts. I notice that the attached auditor's report still refers to the 2014 accounts. This is a puzzle I can't solve.

You can still see the 2014 accounts at

http://p1card.com/wp-content/upload...-Group-Ltd-Signed-FY2014-Financial-Report.pdf